Q3 2015 Financial Results - Report on Tyson Foods, Inc.

Aug 10, 2015, 09:00 ET from www.aciassociation.com

NEW YORK, August 10, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Tyson Foods, Inc. (NYSE: TSN). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=TSN

Highlights from our TSN Report include:

  • Tyson Misses Earnings and Sales Expectations - On August 3, 2015, Tyson Foods, Inc. reported Q3 2015 total sales of $10.1 billion, up by 4% Y-o-Y. The Company reported an operating income of $563 million as compared to $351 million in Q3 2014. Net income attributable to Tyson rose 31.92% to $343 million or 0.83 per diluted share, compared to $260 million or 0.73 per diluted share in Q3 2014. The Company earned adjusted EPS of $0.80, up 7% from $0.75 in prior year. However, the same was below analysts average estimate of $0.92 per share, according to Thomson Reuters I/B/E/S. Additionally, analysts had forecast sales of $10.3 billion for the quarter.
  • Segment Sales Performance - Tyson Foods' sales volumes in Chicken segment grew 2.9% as a result of stronger demand for chicken products and mix of rendered product sales. Sales volume in Beef segment decreased by 3.9% due to a reduction in live cattle processed while the average sales price increased 6.9% due to lower domestic availability of beef products. Pork segment's sales volume decreased 4.8% due to the divestiture of Heinold Hog Markets business in the Q1 2015. Sales volume in Prepared Foods segment increased 77.4% due to incremental volumes from the acquisition of Hillshire Brands. The Company's International sales volume saw a decline of 25.3% as it closed the sale of its Brazilian operation during the Q1 2015 and due to weak demand in China, partially offset by stronger demand in Mexico.  
  • CEO's note - Donnie Smith, President and CEO of Tyson Foods stated, "Our beef business suffered from export market disruptions that had an $84 million impact on third quarter results, and we continue to see very high cattle costs at a time when product values and export issues are making it difficult to realize expected revenue levels in this spread business." The beef segment posted an operating loss of $7 million, a wide swing from the $101 million operating income posted in the same quarter of 2014.
  • Guidance update - The Company's outlook includes sales of c. $41 billion for fiscal 2015 and fiscal 2016, each. The Company expects its capital expenditures to approximate $900 million for fiscal 2015 and range between $900 - $950 million for fiscal 2016. Tyson also expects fiscal 2015 adjusted earnings in the range of $3.10 to $3.20 per share, below its previous forecast for earnings of $3.30 to $3.40. However, the same was below Wall Street forecasts for earnings of $3.44 a share, as per FT.com.

To find out how this influences our rating on Tyson Foods, Inc., read the full report in its entirety here: http://www.aciassociation.com/?c=TSN


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